RTO Stock Analysis: Rentokil Initial | NYSE
Specialty Business Services | NYSE, USA | Market Cap: 10.090m USD | 12M Return: -21.5% | US7601251041 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 42.1M
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Rentokil Initial plc is a global route-based services provider operating across North America, Europe, the UK, Asia, the Middle East, North Africa, Turkey, and the Pacific. Its core offerings include pest control services targeting rodents, flying and crawling insects, and other forms of wildlife management, alongside hygiene services such as soap and hand sanitizer dispensers, hand dryers, air purification systems, cubicle and surface sanitizers, feminine hygiene units, and floor protection mats.
Beyond pest control and hygiene, the company supplies and launders workwear garments for commercial organizations and provides specialist cleaning services including graffiti removal, deep cleaning of kitchens and washrooms, trauma cleaning, and flood or fire damage restoration. The route-based delivery model is characteristic of the environmental and facilities services sector, relying on recurring scheduled visits to commercial customer sites such as offices, food service operators, and healthcare facilities.
The company was founded in 1903 and is headquartered in Crawley, United Kingdom. It trades on the NYSE under the ticker RTO within the Industrials sector, classified under the GICS sub-industry of Environmental & Facilities Services.
- Terminix acquisition drives North America pest control revenue growth
- Integration costs and amortization pressure operating margins
- Rollins competition intensifies in US pest control market
| Net Income: 477.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA -0.19 > 1.0 |
| NWC/Revenue: 3.48% < 20% (prev 5.20%; Δ -1.71% < -1%) |
| CFO/TA 0.06 > 3% & CFO 929.1m > Net Income 477.7m |
| Net Debt (4.23b) to EBITDA (1.39b): 3.04 < 3 |
| Current Ratio: 1.06 > 1.5 & < 3 |
| Outstanding Shares: last quarter (507.0m) vs 12m ago 0.20% < -2% |
| Gross Margin: 13.95% > 18% (prev 13.14%; Δ 0.81% > 0.5%) |
| Asset Turnover: 49.43% > 50% (prev 51.39%; Δ -1.96% > 0%) |
| Interest Coverage Ratio: 4.03 > 6 (EBIT TTM 951.1m / Interest Expense TTM 235.9m) |
| A: 0.02 (Total Current Assets 4.12b - Total Current Liabilities 3.87b) / Total Assets 14.6b |
| B: 0.44 (Retained Earnings 6.42b / Total Assets 14.6b) |
| C: 0.07 (EBIT TTM 951.1m / Avg Total Assets 14.4b) |
| D: 0.61 (Book Value of Equity 5.55b / Total Liabilities 9.09b) |
| Altman-Z'' = 2.62 = A |
| DSRI: 1.10 (Receivables 1.27b/1.18b, Revenue 7.14b/7.31b) |
| GMI: 0.94 (GM 13.14% / 13.95%) |
| AQI: 0.97 (AQ_t 0.65 / AQ_t-1 0.67) |
| SGI: 0.98 (Revenue 7.14b / 7.31b) |
| TATA: -0.03 (NI 477.7m - CFO 929.1m) / TA 14.6b) |
| Beneish M = -3.04 (Cap -4..+1) = AA |
As of October 05, 2026, the stock is trading at USD 19.95 with a total of 2,236,516 shares traded. Over the past week, the price has changed by -3.34%, over one month by -17.32%, over three months by -32.85% and over the past year by -21.53%.
Current recommended Stop Loss: 19.30 (which is 3.3% or 1.3 ATR below the current price).
Rentokil Initial has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy RTO.
- StrongBuy: 1
- Buy: 2
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 31.8 | 59.5% |
P/E Trailing = 31.3281
P/E Forward = 13.7931
P/S = 1.4146
P/B = 1.9497
P/EG = 0.8623
Revenue TTM = 7.14b USD
EBIT TTM = 951.1m USD
EBITDA TTM = 1.39b USD
Long Term Debt = 3.60b USD (from longTermDebt, last quarter)
Short Term Debt = 2.12b USD (from shortTermDebt, last quarter)
Debt = 6.72b USD (from shortLongTermDebtTotal, last quarter) + Leases 543.0m
Net Debt = 4.23b USD (calculated: Debt 6.72b - CCE 2.49b)
Enterprise Value = 14.3b USD (10.1b + Debt 6.72b - CCE 2.49b)
Interest Coverage Ratio = 4.03 (Ebit TTM 951.1m / Interest Expense TTM 235.9m)
EV/FCF = 18.61x (Enterprise Value 14.3b / FCF TTM 769.6m)
FCF Yield = 5.37% (FCF TTM 769.6m / Enterprise Value 14.3b)
FCF Margin = 10.79% (FCF TTM 769.6m / Revenue TTM 7.14b)
Net Margin = 6.69% (Net Income TTM 477.7m / Revenue TTM 7.14b)
Gross Margin = 13.95% ((Revenue TTM 7.14b - Cost of Revenue TTM 6.14b) / Revenue TTM)
Gross Margin QoQ = 14.02% (prev 13.88%)
Tobins Q-Ratio = 0.98 (Enterprise Value 14.3b / Total Assets 14.6b)
Interest Expense / Debt = 3.51% (Interest Expense 235.9m / Debt 6.72b)
Taxrate = 26.31% (115.1m / 437.6m)
NOPAT = 700.9m (EBIT 951.1m * (1 - 26.31%))
Current Ratio = 1.06 (Total Current Assets 4.12b / Total Current Liabilities 3.87b)
Debt / Equity = 1.21 (Debt 6.72b / totalStockholderEquity, last quarter 5.55b)
Debt / EBITDA = 3.04 (Net Debt 4.23b / EBITDA 1.39b)
Debt / FCF = 5.50 (Net Debt 4.23b / FCF TTM 769.6m)
Total Stockholder Equity = 5.13b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.31% (Net Income 477.7m / Total Assets 14.6b)
RoE = 9.31% (Net Income TTM 477.7m / Total Stockholder Equity 5.13b)
RoCE = 10.89% (EBIT 951.1m / Capital Employed (Equity 5.13b + L.T.Debt 3.60b))
RoIC = 5.59% (NOPAT 700.9m / Invested Capital 12.5b)
WACC = 5.43% (E(10.1b)/V(16.8b) * Re(7.32%) + D(6.72b)/V(16.8b) * Rd(3.51%) * (1-Tc(0.26)))
Discount Rate = 7.32% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 80.21 | Cagr: 14.59%
[DCF] Terminal Value 75.33% ; FCFF base≈772.1m ; Y1≈770.0m ; Y5≈804.6m
[DCF] Fair Price = 16.49 (EV 12.5b - Net Debt 4.23b = Equity 8.30b / Shares 503.2m; r=8.35% [WACC [floored]]; 5y FCF grow -0.82% → 2.50% )
EPS Correlation: -78.39 | EPS CAGR: -68.51% | SUE: 0.0 | # QB: 0
Revenue Correlation: 84.64 | Revenue CAGR: 18.21% | SUE: N/A | # QB: 0
EPS current Year (2026-12-31): EPS=1.40 | Chg30d=-0.36% | Revisions=-40% | GrowthEPS=+8.5% | GrowthRev=+4.8%
EPS next Year (2027-12-31): EPS=1.52 | Chg30d=-1.74% | Revisions=-40% | GrowthEPS=+8.9% | GrowthRev=+3.8%
[Analyst] Revisions Ratio: -57% (up=0, down=4)